Correlation Between Philippine Savings and Bloomberry Resorts
Can any of the company-specific risk be diversified away by investing in both Philippine Savings and Bloomberry Resorts at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Philippine Savings and Bloomberry Resorts into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Philippine Savings Bank and Bloomberry Resorts Corp, you can compare the effects of market volatilities on Philippine Savings and Bloomberry Resorts and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Philippine Savings with a short position of Bloomberry Resorts. Check out your portfolio center. Please also check ongoing floating volatility patterns of Philippine Savings and Bloomberry Resorts.
Diversification Opportunities for Philippine Savings and Bloomberry Resorts
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Philippine and Bloomberry is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Philippine Savings Bank and Bloomberry Resorts Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bloomberry Resorts Corp and Philippine Savings is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Philippine Savings Bank are associated (or correlated) with Bloomberry Resorts. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bloomberry Resorts Corp has no effect on the direction of Philippine Savings i.e., Philippine Savings and Bloomberry Resorts go up and down completely randomly.
Pair Corralation between Philippine Savings and Bloomberry Resorts
Assuming the 90 days trading horizon Philippine Savings Bank is expected to generate 0.58 times more return on investment than Bloomberry Resorts. However, Philippine Savings Bank is 1.74 times less risky than Bloomberry Resorts. It trades about -0.01 of its potential returns per unit of risk. Bloomberry Resorts Corp is currently generating about -0.46 per unit of risk. If you would invest 6,050 in Philippine Savings Bank on September 2, 2024 and sell it today you would lose (50.00) from holding Philippine Savings Bank or give up 0.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Philippine Savings Bank vs. Bloomberry Resorts Corp
Performance |
| Timeline |
| Philippine Savings Bank |
| Bloomberry Resorts Corp |
Philippine Savings and Bloomberry Resorts Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Philippine Savings and Bloomberry Resorts
The main advantage of trading using opposite Philippine Savings and Bloomberry Resorts positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Philippine Savings position performs unexpectedly, Bloomberry Resorts can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Bloomberry Resorts will offset losses from the drop in Bloomberry Resorts' long position.| Philippine Savings vs. Metropolitan Bank Trust | Philippine Savings vs. Philippine National Bank | Philippine Savings vs. Asia United Bank |
| Bloomberry Resorts vs. Century Pacific Food | Bloomberry Resorts vs. STI Education Systems | Bloomberry Resorts vs. SM Investments Corp | Bloomberry Resorts vs. COL Financial Group |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |